Louisiana Well Positioned for Growth in 2013
As the International Council of Shopping Center’s (ICSC’s) State Director for Louisiana, I recently contributed an article for our Quarterly Membership Newsletter that I’d like to share. Read the article below about how well the State of Louisiana has been performing compared to the nation:
It is hard to believe that 2012 is already more than a month behind us. What an exciting time to be in the real estate industry and more specifically the retail segment of the industry. As we enter into 2013, new retail activity in our state continues to be on the rise and the industry has exciting and prosperous times ahead of us. I do not know anyone in our business locally that is not looking at a full pipeline of activity for the coming year. We should consider ourselves extremely blessed to be working in markets that have performed so well over the past few years.
Consider how well the State of Louisiana has performed over the last few years, in contrast to much of the nation.
Employment performance has been significant. At 5.5%, Louisiana’s December 2012 seasonally-adjusted unemployment rate is at a four-year low, tied for 11th lowest rate in the nation and well below the 7.2% Southern average and 7.8% U.S. average. Louisiana’s private sector added 26,800 jobs over the year, extending the state’s streak of private sector employment gains to 28 consecutive months. Compared to the U.S., Louisiana is one of just six states with more jobs now than before the national recession began; and since the official end of the national recession in June 2009, Louisiana has added jobs at a faster rate than both the South and the U.S.
Louisiana’s population is also growing according to the U.S. Census Bureau, experiencing five straight years of net population in-migration, with more people moving to the state than leaving. Louisiana netted over 20,000 people in the last four years and the in-migration gains are largely the result of the state’s economic performance. Compare that to the 15-year period from 1990 to 2005, when the state experienced net domestic out-migration of more than 7,500 people every single year, and one can quickly appreciate how much things have changed. Also, according to the U.S. Census Bureau, the population growth rate over the last five years through July 1, 2012, was about 23 percent faster in Louisiana than that of the U.S. overall.
Economic competitiveness is reaching new heights. In 2012, Louisiana experienced its best year for business development in the last five years, securing more jobs and investment than in any of the previous four years. The state increased its recruitment of new jobs (up 17 %, to more than 24,000) and its attraction of new capital investment (up 24 %, to $22.3 billion) over the strong performance of 2011. It is incredible that this was achieved against the backdrop of a relatively stagnant U.S. economy. The best is yet to come, according to LED Secretary Stephen Moret. He predicts Louisiana will have at least $50 billion to $60 billion worth of new manufacturing projects under way over the next three to four years, many of which will be announced during the coming 12 to 18 months. In its 2012 economic outlook report, the American Legislative Exchange Council again ranked Louisiana’s economic outlook among that of the top 20 states in the U.S.
Louisiana’s business climate is also improving and people are starting to take notice. In the last five years, Louisiana has improved to its highest-ever position in every major national ranking of state business climates, with no other state exhibiting more improvement. CEOs nationwide voted Louisiana the most improved state for business over the last four years, according to Chief Executive. Louisiana ranked 7th in Site Selection’s business climate report in 2012 and 2011, up from 9th in 2010 and 25th in 2009. Area Development ranked Louisiana #6 among the top states for doing business, ranking #1 in the U.S. for cooperative state government and top 5 for incentives, economic recovery, speed of permitting, workforce training, cost of doing business, business climate and labor climate. Business Facilities ranked Louisiana #5 best business climate in America and Pollina Corporate Real Estate ranked Louisiana’s business climate #16 in 2012, up 24 spots since 2008. Additionally in 2012, the state ranked 2nd in the U.S. (1st in the south) for providing the lowest business tax burden for new firms and 10th in the U.S. (3rd in the south) for mature firms, according to the Tax Foundation.
Significant employment performance, population growth, strong economic competitiveness, and a nationally recognized, improving business climate in Louisiana has well positioned the state as the nation seeks sustained growth in 2013. All of this is good news for retail. And good news for us.
Mid-City Market – February Update
Masonry, Roofing, and Sheeting – Winn Dixie
Storefront Sheeting and Elements – Retail Building C
Since last month’s update, we have moved forward rapidly in the site and building construction at Mid-City Market in New Orleans. At Winn-Dixie, we have finished standing the exterior walls, begun sheeting the walls, have set the roof curbs, and finished installing the re-steel. We have set masonry along the rear wall on the N. Solomon Street side and plan to finish wall sheeting in the next couple of weeks.
At the former retail building we are renovating, we have completed the exterior wall sheeting, interior wall framing, and are sheeting the interior walls. We plan to finish the wall work and finish setting brick for the exterior walls in the next couple of weeks. We will be turning the building over to tenants for their interior buildouts the first week of April. The two small-shop buildings fronting Carrollton are progressing quickly as well. Over the next week, we will be finishing all of the exterior wall framing for these buildings and begin laying the retaining walls. These buildings will be turned over to tenants for their interior buildouts in May, many of these tenants have shorter build out periods. We will be delivering the Pei Wei building the last week of March to Pei Wei for their interior build out work.
Hammond Square: 2013 – A Year to Try New Things
Based on the positive sales reported by many of my tenants at Hammond Square, it looks like the residents of Tangipahoa Parish and the surrounding area had a very active Holiday season. Several retailers’ sales were the best in December 2012 from any other month since they opened! These numbers tell me that managing Hammond Square is going to keep me pretty busy.
So what does 2013 have in store for Hammond Square? This Saturday, January 26, kicks off our first heavily marketed event of the year. The Tangi Humane Society will have on-site pet adoptions starting at 10 am. The Shopping Center is giving away branded flying disks to people who stop by and donate $5 or bring stainless steel water/food bowls. This was the first time we used a promoted post on Facebook to let our shoppers know about the event. Another event that is new to the Center is in its final planning stages and is scheduled for Wednesday, February 13 from 7-9 pm. The Lover’s Lane Valentine’s event will bring a classic car show down Palace Drive with wine tasting stations and a photo booth. All are free to the community! We are using several outlets to promote this event – Facebook, banners, landscape signs, flyers, prizes for the car show participants and a radio remote.
In 2013 we are also working closer with two major businesses in Hammond: North Oaks Health System and Southeastern Louisiana University. Based on meetings held with both in early January, there will be more events and community involvement in the coming year at Hammond Square.
In regards to our leasing approach, we are aggressively pursuing some locally owned businesses for locations on Palace Drive. Locally owned businesses can bring character and sense of community to our Center.
It looks like 2013 will be a busy year for me, the leasing team, and Hammond Square’s retailers! Shop in Tangi! Shop Hammond Square!
President’s Message: Lucky 13!
As we embark upon a new year – 2013 (lucky 13!), I look back in amazement at how much our Stirling team has accomplished over the last twelve months.
We started the year with the acquisition of Avant Properties in Shreveport, Louisiana and capped it off with our recently announced joint venture development deal with CBL Properties of the Fremaux Town Center in Slidell, Louisiana.
In between those two milestone bookends, consider the following list of other accomplishments:
- The kickoff of Mid-City Market in New Orleans.
- The historic redevelopment of the American Legion Building into a state of the art Walgreens Drug Store on Magazine Street in New Orleans.
- The opening of The Fresh Market on St. Charles Avenue in New Orleans.
- The $24 million acquisition of Tiger Manor Apartments in Baton Rouge.
- The securing of two new Walgreens development deals in Terrytown & Gulfport.
- The opening of Sam’s Club at River Chase in Covington.
- The successful closing of over $100 million in financing.
- The increase of over 16% of our commercial brokerage volume.
And while all of this was happening, we were also able to implement a new, state-of-the-art accounting software, introduce a brand new corporate website and complete a major restructuring of the company.
These accomplishments are all tributes to the outstanding team of professionals at Stirling Properties. We are now setting our sights on an outstanding new year and plan on making some additional major announcements soon. 2013 will certainly be a banner year – and lucky too.
Mid-City Market – January Update
Framing Walls and Slab at Winn-Dixie – 1/12/13
Steel Framing, Slab, Site Work at Retail A/B – 1/8/13
Since last month’s update, we have moved forward rapidly in the site and building construction at Mid-City Market. At Winn-Dixie, despite the rainy weather, we have poured almost all of the concrete slab for the building with the remainder to be poured this week. We have constructed two of the exterior load bearing metal stud framing walls and after the third wall is constructed, we will be erecting structural steel on the outside of the building.
At the former retail building we are renovating, we have completed the metal stud work at the perimeter entrances. We are finalizing the preparation for roof work which will be underway this month. The two small-shop buildings fronting Carrollton are progressing quickly as well. The “Retail B” building slab was poured Saturday and the “Retail A” building slab will be poured by the end of this week. Over the next two weeks the metal stud framing of the walls in both buildings will take place and be immediately followed by structural steel.
We are excited to announce that we have executed a lease with LA Nail Spa for 1,551 square feet in one of the small shop buildings. We are seeing strong leasing activity for the remaining space and are working towards opening 100% occupied, while seeking the right tenant mix for long-term success.
Stirling Properties and CBL & Associates Properties, Inc. to Develop Fremaux Town Center in Slidell, Louisiana
Development Over 70% Leased Prior to Construction Start
COVINGTON, LA and CHATTANOOGA, Tenn. – January 15, 2013 – Stirling Properties and CBL & Associates Properties, Inc. (NYSE: CBL) today announced the formation of a 35/65 joint venture to develop Fremaux Town Center in Slidell, Louisiana. Once complete, the 80+ acre site will consist of two phases. Phase I will comprise approximately 295,000 square feet with anchors including Dick’s Sporting Goods, Michaels, T.J.Maxx, and Kohl’s. Phase II will include up to 300,000 square feet of additional retail space. Construction is set to begin on Phase I in March of this year, with the grand opening scheduled for the second quarter of 2014.
“Stirling Properties is excited about our partnership with CBL & Associates Properties to develop Fremaux Town Center and believes that this joint venture brings the best possible team together to build this project,” said Stirling Properties’ Senior Vice President of Development Townsend Underhill. “We believe this site has the characteristics to become a premier retail shopping destination and we are happy to continue our long and successful history of retail development in the City of Slidell.”
“Stirling Properties has a solid reputation as a leading retail developer in southern Louisiana and we are pleased to partner with them on this project,” said Michael Lebovitz, CBL’s Executive Vice President – Development and Administration. “Fremaux Town Center is well-located and is already well leased with an outstanding retail line-up. We are looking forward to announcing additional retailers as the development progresses.”
Fremaux Town Center Phase I is currently more than 70% leased with committed retailers such as Dick’s Sporting Goods, Michaels, Kohl’s, PetSmart, T.J.Maxx, LongHorn Steakhouse, dressbarn, ULTA Beauty, Lane Bryant, Rack Room Shoes, Best Buy and Versona Accessories. Fremaux Town Center will be located on more than 80 acres at the southwest corner of Interstate 10 and Fremaux Avenue in Slidell, LA. Slidell is the largest municipality in St. Tammany Parish on the northern shore of Lake Pontchartrain near the city of New Orleans. The area has experienced significant growth following Hurricane Katrina. With its interstate location and high-visibility, Fremaux Town Center is expected to become a regional destination. Stirling will lead the development of the project and CBL and Stirling will jointly lease and market the center.
For leasing information, please contact Ryan Pecot by telephone at 337.572.0246 or by email at rpecot@stirlingprop.com.
About CBL & Associates Properties, Inc.
CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interest in or manages 163 properties, including 95 regional malls/open-air centers. The properties are located in 27 states and total 91.8 million square feet including 9.4 million square feet of non-owned shopping centers managed for third parties. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St. Louis, MO. Additional information can be found at cblproperties.com.
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